Global Marketing Case Study

Group 3 Amlan (301) Nitya (305) Chaitnya (319) Hanisha(320) Kishan (325) (332) Anusha (347) Shesh (351) Sidhardha (355)

Outline
Introduction Company Profile Competitors

Products and services

SWOT Problems

Solutions
Conclusion

Introduction
Oriflame s swedish cosmetic company
It concentrated on impressive dvelopment in eastern and central europe. Special interest towards its operations in poland.

Company Profile
Founded in Sweden in 1967 1.3 billion Euros in annual sales approximately 3.1 million Consultants 7 500 employees

900 products annually

Global R&D center with more than 100 scientists 5 own production units Operations in 61 countries of which 13

franchisees

Competitors
US based direct selling company
Products-Avon Color, Anew, Avon Solutions, Avon Naturals etc

Operates in more than 88 countries and territories in Asia, Africa, Europe and the Americas.

Direct selling company under ModiGroup. It offers a wide range of Home Care, Personal Care, Laundry Care, Kitchen Care and Auto Care products

Market Coverage
Oriflame operate in 61 countries around the world and run 5 own manufacturing facilities in 1) 2) 3) 4) 5) Stockholm,Sweden Warsaw,Poland Krasnogoesk,Russia Kunshan,China New Delhi,India

New product launches

Optimals Cleansers
Optimals Cleansing Gel Optimals Foaming Cleanser Optimals Cleansing Milk Optimals Refreshing Toner

Optimals Nutri Calm Creams

Optimals Nutri Calm Day Cream Nutri Calm Night Cream

Optimals Oxygen Boost

Optimals Bio Maximum

Swot analysis
Strengths

1) Intensive direct sales person and supply chain of company(300000 lakh distributors) 2) Company steady growth 3) Research and development(dublin,chile) 4) Product range (that increased from 100 to 150 then too 200 and now 250(approx)) 5) They helped poor distributor by cash payment facilities from state bank system 6) Promotion and advertising( campaign , $45,000 per country) 7) Local management 8) Value for money 9) Acquisition (kabi vitrum(sweden),fleur de santa (denmark)

weakness
Providing distributorship

Stock in various countries

Providing catalog to all the customers(380,000)

Opportunities
Growth in the industry Developing new market for skin care products in us Expansion of their business in other parts of world Developing more new and unique product in R&D Introduction of new brand (like velvary) With the resource available in local market and goods in which consumer are active Professional training for the local nations future management

Threats
Saturation of us market
Change in the political environment in various countries No proper demarcation of territory to any of the distributors The taxation policy of the country (ex;turkey) Competition in market(avon in russia,maybelline)

Problems
Offer product are quickly in out of stock.
Enlarge its product range Services to the distributors Adverting campaign

Solutions
Maintain sufficient amount of stock to meet the customers in peak levels as well as regular periods.

Adverting campaign
Don't make your consumer guess what they should do, tell them. This step can be as simple as telling them to call you, check your website, send you an e-mail or, of course, to buy your product or service.

Contd..
Services to the distributors
Negotiate lower prices : By showing that you can enhance your variety or increase the number of units you sell per week and per year, you gain negotiating leverage. Both you and your distributor will make more sales and profits. Communicate openly : Communicate ways in which we can work together to ensure better service in trucking, products or sales.

Contd..
Plan ahead: Building a successful relationship with a distributor means first assessing your stores goals. Do you want to grow sales or profits, reduce costs, enhance your strengths in a competitive environment or improve results within defined consumer segments?

Contd..
Enlarge its product range
Using market research to develop a product range Building the range A business can enlarge its product range in two ways: internally, through new product development based on market research. Externally, by acquiring related companies. Category segmentation By dividing a category into segments, businesses can identify different groups of consumer wants. It is then possible to design products to meet those requirements.

Contd..
Ansoff's matrix is a useful tool for examining a company's product range. This compares the alternatives of developing new products and new markets. There are four main options: Market penetration: Selling more of the same types of product to the same types of people. Product development: Building on existing relationships with consumers and on a creative ability to develop new products suited to consumer wants. Market development: Developing an existing product to cater for emerging markets. Diversification: Developing new products for new markets.

Conclusion
Strongly committed to protecting the environment . To supply products at affordable luxury by offering a complete range of high quality products sold direct .